tv [untitled] October 26, 2012 11:00am-11:30am PDT
to allow us to address uncertainties, like extreme dry year or plant outages. allows us to budget for any contingencies. we presently have in our adopted budget a budget line item for risk management as a contingency fund. at this point that is set at $4 million a year. we are proposing that the cost limitation be limited -- excuse me, that the use of that risk management fund, that $4 million, be applied as it is today, but also be available to us to meet this rps requirement. it would be -- allow us to use those funds, modest amounts of those funds, minimizing the need to raise rates on -- to
customers in future budget years. it's really a safety valve to make sure that our compliance doesn't push costs up unreasonably. president torres, you alluded to the timeline. let me put it up on the screen here so that you can see more specifically where we're at. >> right, that's good for the public to see that. >> yes. >> my other question is in terms of the rps eligible, the renewables, what percentage are we looking at in terms of renewables? we have solar, wind -- >> right. so, now our resource mix is our biogas, our hydro and solar. >> okay. >> and because we have this separate section of the rps law, we don't have to procure beyond those resources except very infrequently. and we are proposing that that procurement be from renewable energy credits.
>> so, the way they're titled would be appropriate? >> they would be. they would be qualified resources under state law. >> if we had -- >> if we had them, yes. >> and we have no geo thermal here? >> correct. we have purchased it in the part, but we do not have any in our portfolio today. >> where do we purchase it from? >> we purchase from the geo thermal system in guyser. >> in guyser ville? >> yes. >> are they acceptible our hydro now? >> yes, commissioner, they are accepting our hydro. yeah, another hooray, that's three in one meeting. [laughter] >> we have -- we were able through the legislative process to explain that were we to have the same rules applied to us, we would just be selling our hydro and substituting in other renewable resources. the objective of the law is to in part to reduce the emissions from power plants.
we don't have any power plants that emit. >> [inaudible]. >> yeah, i have a couple of questions. so, we can't bank the rps resources? >> we can. under the rules, we can -- if we have -- if we do that math equation and we have lots of extra rps compliant power, we can bank those renewable energy credits. you earlier allowed us to register with us the western system that allows folks to have those credits certified in a way that's recognized by the marketplace. we are registering those credits, then, and we can use them ourselves in a subsequent compliance year. so, for example, in this year because last year was wet, 2011 was wet, we had some extra. this year we're going to need to purchase some, but we're also taking some of what we generated last year and applying it to this year. so, we're not having to purchase as much as we
otherwise would have. >> and they don't expire? >> they do expire. under the regulations, they do expire. so, we would either use them or if we projected that we wouldn't need them, we would attempt to sell them before they expire. so, we extract the value one way or the other. >> that was my other question. and then i thought we budgeted in our budget for some additional renewable procurement. >> yes, we do have additional renewable procurement in our budget. some of that capacity, if you will, that financial capacity is absorbed by the power purchase agreement we have with sunset, for the sunset soler output. but we also recognize that even in any year, what we may need may need we exceed forecast. we're looking at the risk management part of our line item to fund these unusual circumstances. >> and when was the last time
that we weren't able to meet our needs? and i know that these rps standards are new, so, maybe we didn't have the same issues. >> we didn't have the same requirement. >> but have we been able to meet our needs with hetch hetchy with our parr? >> there have been times we had to meet short-term purchases in order to meet our needs. and maybe the best way to look at that is to again look at the first background slide i put up where you can see there are some years where a lot of our generation is considerably lower. you could tell that our retail sales pretty much track a wet year. not exactly, but in recent years, sorry, they pretty much track a dry year. so, the dry year line you see on this slide here is about where our retail sales are or have been in the last 10 or so years. and, so, looking at these --
the tail end of this slide here, you can see although years we have plenty of power to cover our retail sales. >> so, one of the things this slide doesn't give you is sort of like that day to day sort of variation that happens. that's an annual sort of like slide. and when you look at it sort of by quarter or by month, great, you have lots of power in april, may, june, and you have very little in september, october, november. until the rain starts and the snow starts again. so, if there is a cycle that kind of goes on and we do do short term purchases in what we call quarter 3 and quarter 4. just to cover, you know, our existing customers. >> and that's why we'd be procuring the recs this year, right? >> yes. this is a lower than normal water year and we've had some outages. >> right. >> thank you very much. >> anybody have any questions? yes, commissioner moran.
>> on the -- on page 12 of the presentation where you talk about the cost limitation proposal. >> yes. >> and you have $100 per megawatt hour. >> yes. >> which is twice what the penalty level is that was set by the cpuc for pg&e. >> yes. >> what is the thinking as to why we doubled that? why do we choose to have a twice what the cpucd? >> one is a penalty is one is a cost limitation. it could certainly be lower if you prefer a lower -- to cap the amount the puc will pay at a lower level, we could. it was really just -- we're just providing that as a benchmark for you to understand sort of some of the context in which we're proposing this number. >> and the market for renewables ranges from currently what to what? >> it's also about 30 to 50 megawatt premium on top of the
brown power. brown power price. >> so, 30 do $50 per megawatt hour premium? >> yes. >> and this says that it would be market -- in case of an adverse market which is probably when we would most likely need to buy this stuff, it gives us some price flexibility there. >> right. to the extent that we are low on hydro -- california is low on hydro, and, so, market prices are going to be up overall as a result. >> thank you. >> what is the impact of the deductions on solar utilization? have we measured that? tax deductions that are -- >> have we measured that? we certainly realize that it lowers the cost. >> right. >> and that's why we pursued a third-party for our development of the sunset solar project. >> okay. >> and didn't fund it ourselves. i can't recall off the top of my head, maybe you do, todd, what the -- mr. reedstrom, what
the financial impact of that was for us. >> it was pretty significant. by way of comparison, the tax credit, tax credit financing that we successfully undertook for current sunset solar brought the average cost per kilowatt hour down to 23-1/2 cents. that compares to average costs of our hydro system. all the costs included of about 9 cents. so, without the tax credit federal financing as well as the state programs, it would have been over 30 cents kilowatt hour. >> you need to take credit for that. >> we have a line item -- >> that's why i try to raise some of these issues because when you and the work that this agency has been doing, i am so proud of the fact that the cost saving that ultimately go to the rate payer, we need to talk about. if we're going to get your trumpet so you can blow your horn, we'll do that. you should be commended because you've been taking into account, you've been a steady
steward of the process and look what it's producing for the rate payer here in san francisco. i'm sure most jurisdictions, knowing some of the mayors in those other jurisdictions, i don't think they've had as good a record as we've had here in san francisco. i want to say thank you. i think it's important to bring it out into the public view. >> thank you. it's definitely a team effort. a lot of detail. >> no question it's a team effort. my comments were directed to the team. any other comments? we don't need to accept anything. [speaker not understood]. >> there's no action. >> right, no action necessary. i guess there is an action necessary to go into executive session, closed session. >> thank you. >> any public comments before we move into closed session? all right, we need a motion to assert the attorney/client privilege. >> move to assert the attorney/client privilege. >> second. all those in favor signify by saying aye. >> aye. >> all right. >> closed session items, item 17, existing litigation lennon versus city and county of san francisco.
item 18, existing litigation cadmin versus city and county of san francisco. item 19, existing claim, chung versus city and county of san francisco. and item 20, existing litigation city and county of san francisco versus pacific run and gun club. >> let the record show that the private session [inaudible]. >> i would like to make a motion not to disclose -- [inaudible]. >> [inaudible]. >> aye. >> [inaudible]. [adjourned]
>> commissioner katz is probably on her way so we're going to start. >> i move we reconvene in open session. >> second. >> open session. >> also, [inaudible]. also we cannot disclose anything discussed in executive session. >> second. >> okay. please be advised that ringing of any cell phones, pagers or similar electronic devices are prohibited at this meeting. please be advised the chair may order the removal from the room of any person responsible for the ring big of or use of a cell phone, pager, or other
similar sound producing electronic device. please be advised that a member of the public can have up to three minutes to make pertinent public comments on each agenda item unless the port commission adopts a shorter period on any item. item 7a, executive director's report. >> good afternoon, port commissioners. ment members of the public, members of the port staff, welcome here today. i just have a couple of very quick and happy items to report on, starting with milestone update on our pier 43-1/2 project. you may recall that that is part of the bay trail and lays atop the seawall in fisherman's wharf between where blue and gold sweet calls and the san friscan restaurant. constructing a new waterfront concrete promenade from powell street to the franciscan restaurant. our contractor there is vortex
marine. they have been working rather diligently including saturdays most of the last month and will continue to work saturdays through thanksgiving with the goal of completing the project to substantial completion by thanksgiving. so far, 92 two-foot wide diameter concrete piles each of which are 100 feet in length, support the new wharf deck and that deck will go along the promenade there and come around behind the franciscan restaurant replacing old deck that has been condemned sometime ago. in addition and very importantly, over 500 feet of the timber seawall has been replaced with reinforced concrete wall and rock armor stone. this is a very important project for that area of the waterfront. on october 4th, friday, october 4th, the contractor began laying the cement pre-cast segment. so, part of the concrete will be poured in place and part of that concrete will be pre-cast and delivered. and, so, three of the pre-cast
segments were delivered via barge and set into place saturday, october 13th. and the remaining 11 segments have been cast and are in transit to the job site for placement in the next two weeks. this past week at 1:00 a.m., 42 cement trucks arrived to pour the remaining concrete of the area that's cast in place. and, so, that was really rather cool. they came out 1:00 a.m. and were finished by sunrise. so, it was a very busy night, if you will. they poured 9,000 square feet of 15-inch thick concrete deck, about 380 cubic yards. that represents about 40% of the overall deck material. so, the remainder will be cast -- pre-cast, which will be delivered by barge. the next few weeks we'll see the remainder of the pre-cast deck panels placed p. topping slab placed, railing placed, lighting, and land side paving. so, this project is moving along with an expected opening date and time for thanksgiving on the opening of the crab
season. so, that will be really perfect for all of us. i just want to take a few moments to thank all of our partners in the fisherman's wharf community for their patience with the project and the department of public works for their assistance in project management and, of course, members of the port staff ranging from port engineering to port real estate, port maintenance, pretty much everybody has been involved in some fashion. that's a very exciting milestone for us. a second one is right here next door and i hope if you didn't get a chance to see it on your way in you'll get a chance to see it on your way out. on saturday half the pier disappeared. it's gone for the most part. it's 90% complete with no serious issues or concerns. there are a few isolated structures which you might be able to see one is up against the pier 1 building. a concrete structure. as well as some of the very, very old ferry floats out towards the back. the project will be substantially complete by the end of this month, which is the middle of next week already. and that is several months ahead of our obligation to
complete it by march of 2013. and you may recall that this is an important aspect of our permit with respect to the americas cup and pier 27 cruise terminal project. the pier item was bid out under the fourth amendment to the turner's pier cruise terminal contract. the total project is $1.3 million with $1 million going to a local lbe construction contractor, which is the sacker company which is a subcontractor to power engineering. so, we're really very pleased about that, and this is the project that's been on the books for a very long time and my kudos to everyone involved, which is too many people to mention. thanks, very great view of the bay there. motorcycle parking will be restored by the end of the month, which is something that people are concerned about. and from this hopefully we'll be able to restore the seating area as well. lastly i wanted to report on the grateful americas
conference that occurred may 11. pete daly traveled to port commission with willie adams. there was a record attendance of 12,500 participants and the portmanaged, manned i guess is a better word, an exhibit for the couple of days during the conference. metro ports which is our steve adore company, had a boost and we hosted a cocktail reception for our key suppliers. our customers, if you will. and we also joined by not only commissioner adams as a member of the iowu international secretary treasurer, but also by mike vigilante who is in the back rooting for the giants there. and also james plato who came from the local [speaker not understood], a new approach that we took, it was extraordinarily well received, and together the port and iow
delegation met with many of our customers and one on one came home with some good results. and, so, if i can, i'd like to defer over to commissioner adams to see if there is anything he'd like to highlight or share your perspective on. >> thank you. first of all, our going to houston is very historical. by the fact in the past only the port would go. but this time the port went and the iow, and i tell you, the customers it was a different approach. we were there working together [inaudible]. and the secretary treasurer, i'm also on the port commission. and we met with different customers. in fact, our biggest customer that goes into pier 80, they're building 10 new ships at $50 million a ship. and they have tried to corner the market. what they're saying is we want to bring double the amount of cargo going into pier 80.
we need a good reliable work force. the port and iow have a good working relationship. we have the best working class workers coming from the iow to get the ships in and out, safe and productive. but also to, we said we want to partnership with you. we need to get together every three months. we need to meet. we want to bring more cargo to the port of san francisco, it's a maritime port. we realize that. and i just want to say a special thank you to peter daly and jim malony, they worked very hard, they were very professional. but as i said, when we sat down across the table and had breakfast, the guy was just like, wow, i'm just relieved to know that labor, port are working together and we're looking into the future. we want to go out together. and one of my commitments as a commissioner is to go on these trips and to take labor and go with the port. and we want to bring more working class jobs, what the community really needs is jobs. they're not doing a good job in
d.c. getting jobs. we want to do it here in the port of san francisco. and i want to thank the support of my commissioners here, president doreen, kim, and leslie, because we're committed. in the future i would just like to say before i'd like to have mike come up and say a word, i think we need more presentations on maritime and our clients. i think it's important. i think we need to be abreast. and we know this is a port with a lot of diversity in it from stadiums to maritime, to exploratorium. we all can coexist. madam president, i'd like to have mike come up and maybe jim wants to come up. i appreciate their efforts and hard work and professionalism [speaker not understood]. >> hello.
thank you, madam president and commission. i appreciate the time. and willie, all the rest of the staff. i want to tell you, it was quite interesting for me. houston, texas is another world. california was -- [laughter] >> that was humidity, right, getting off the plane for sure. we were well received. and, again, i'd like to comment on the port, jim and peter and willie, we worked as a team in the sense our common goal is to bring work to the port of san francisco, develop the brake, boat and bulk facilities that we have and that are still vital maritime docks that we could enhance. speaking to the shippers, they received us in a way that was quite interesting to me
because, excuse me, they were surprised, quite surprised. and a lot of the vendors that were in the exhibit were quite surprised that labor was there, especially iowu labor. we're going to make it a point of continuing our proactiveness in encouraging work to this port and to the bay area because it's quite important for the middle class of this country to enhance it. i want to say, though, it was interesting in this social venue that was -- took place, some of the exchanges. some of the best deals or the best ways to communicate are at these because it breaks down -- it breaks it down for these guys instead of being in the business atmosphere, there was a social atmosphere and they got to know us a little bit. and that's real important to put a face behind the organization or faces, and it was key.
it was quite an experience and we're going to be doing it into the future in 2013. so, thank you and i appreciate the time. >> jim? >> commissioners, thank you for, first of all, for supporting setting commissioner adams and mike and james to houston to support us at the brake boat conference. i think one thing mike said is really key. i think business these days, business continues to be all about relationships and developing those key personal relationships and having an opportunity to sit across the table one on one and talk with -- these are the issues we have, these are the -- this is what i'd like you to address, allow us to want to do business with the port of san francisco. and i think we had an opportunity to talk with saga
force carriers, bbc chartering, rick mers line and other carriers they'd like to call here and talk about these are the issues that we have. labor is an extremely important part of the conversation. i think its was very powerful you september commissioner adams have iowu represented and port commission represented at the conference. and i look forward to doing -- having future opportunities to work together with all of us and partner to work together to get business for the port. so, thank you. and again, thank you for your support. >> thank you. >> [inaudible]. >> go ahead [inaudible]. >> in conclusion, i was just going to say thank you very much, commissioner adams and mike and jim, for your time and your effort in doing this with us and your pragmatism. it paid off handsomely.
madam president, that concludes my report. >> i think there is a groundbreaking at the park. i was wondering if we can share those details with the president. >> i will do my best. you can nod or shake her head. we are hoping to have a public groundbreaking of the new area at the park, acre and a quarter that was added, reported on a couple meetings ago. this next thursday, next week, november 1st at 10:30 a.m. at the site to celebrate the opening of that important project. and, of course, that is going to be open to the public and i believe invitations will be going out. we just got confirmation today. >> so it is confirmed. >> yes, it is confirmed. >> madam chair, i just want to say [inaudible] when i said in the future i would like more presentations on our maritime clients, i thought it would be helpful [inaudible]. i just wanted to make sure. thank you. >> okay, thank you.
we do have item 7b, which is an informational presentation. >> do you want to do public comment -- >> sorry, public comment on the executive director's report. thought we had some already. is there any more? >> [inaudible]. >> one thing you may not have included in the report is one of our largest tenants had a big victory -- [laughter] >> so, congratulations to the giants on making it to the world series. glad to have them as a tenant. (applause) >> and to that end, we are working tirelessly to make the next week a great success in every way. so, that effort started interestingly enough. >> to, that do want to thank our staff and dpt and others for working well with the giants, the division series games as well as the championship series games. and now we welcome the world
series. i think all of us all working together, it really showed. and i think there are nothing but good things about moving the people through all the games. having talked to some of the folks at the giants, really praised executive director for stepping right up and making sure that everyone was on the same page as we [speaker not understood] get things set up. so, thank you. >> thank you for sharing that. i was very gratified by the wonderful beautiful shots of the city we received during all of the days, including our newly repainted port logo on pier 48. we're very proud of. so, more to come with the new projects contemplated at piers 30/32. >> moving on to the next item. >> item 7b, informational presentation on employment and economic impacts as a result of recent infrastructure improvement